Financial Results Q3 FY 2021
December 2020
MUTHOOT FINANCE LIMITED SAFE HARBOUR STATEMENT
This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements.
The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part of the information provided herein is to be construed as a solicitation to make any financial investment and is provided for information only.
Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. In no event shall the company be liable for any damages whatsoever, whether direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business relationships arising out of or in connection with the use of this presentation.
1 THE GROUP
Diversified business of the Group
Shareholding of holding Primary Business company (%)
Muthoot Finance Limited Gold Loans Holding Company
Muthoot Homefin (India) Limited Affordable Housing Finance 100.00
Belstar Microfinance Limited Microfinance 70.01
Muthoot Money Limited Vehicle Finance 100.00
Asia Asset Finance PLC Listed Diversified NBFC in Sri Lanka 72.92
Muthoot Insurance Brokers Private Limited Insurance Broking 100.00
Muthoot Asset Management Private Limited - 100.00
Muthoot Trustee Private Limited - 100.00
2 THE GROUP
Snapshot of performance
9M FY 9M FY H1 FY Q1 FY YoY(%) FY 2020 2021 2020 2021 2021
Group Branch Network (Nos) 5,417 5,268 5,381 5,330 3 5,330
Consolidated Gross Loan Assets* of the Group (` in 557,995 434,357 522,863 465,008 28 468,705 million) Consolidated Profit of the Group (` in million) 27,951 23,329 17,885 8,577 20 31,687
Contribution in the Consolidated Gross Loan Assets* of the Group Muthoot Finance (%) 90 88 89 88 2 88
Subsidiaries (%) 10 12 11 12 (17) 12
Contribution in the Consolidated Profit of the Group
Muthoot Finance (%) 97 94 97 98 3 95
Subsidiaries (%) 3 6 3 2 (50) 5
*Principal amount of Loan assets 3 THE GROUP
Gross Loan Assets* of the Group (` in millions)
9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 9M FY 2020 YoY (%)
Muthoot Finance Limited 503,907 470,162 412,957 416,106 384,982 31
Muthoot Homefin (India) Limited 18,807 19,377 19,787 19,769 20,248 (7)
Belstar Microfinance Limited 28,856 26,867 25,754 26,310 22,849 26
Muthoot Money Limited 4,210 4,633 4,966 5,090 4,915 (14)
Asia Asset Finance PLC 5,245 5,204 5,444 5,380 5,113 3
Less: Intra-Group Loan Assets 3,030 3,380 3,900 3,950 3,750 (19)
Total 557,995 522,863 465,008 468,705 434,357 28
*Principal amount of Loan assets
4 THE GROUP
Standalone Profit of Group Companies (` in millions)
9M FY 9M FY Q3 FY Q3 FY Q2 FY Q1 FY FY 2021 2020 2021 2020 2021 2021 2020
Muthoot Finance Limited 27,265 22,032 9,914 8,152 8,944 8,408 30,183
Muthoot Homefin (India) Limited 75 306 18 104 53 4 318
Muthoot Insurance Brokers Private 219 118 86 53 91 42 104 Limited
Belstar Microfinance Limited 350 769 54 260 151 145 990
Muthoot Money Limited 33 43 (15) 11 73 (25) 27
Asia Asset Finance PLC 7 36 6 15 7 (7) 28
Muthoot Asset Management Private 17 39 2 16 5 10 51 Limited
Muthoot Trustee Private Limited (0.04) (0.16) (0.08) (0.17) (0.01) 0.05 (0.13)
5 Consolidated Statement of Assets and Liabilities (` in millions)
Particulars 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 ASSETS Financial assets Cash and cash equivalents 90,014 61,669 66,710 58,348
Bank Balance other than above 2,604 2,259 2,376 2,959
Derivative Financial Instruments 252 159 1,490 3,449 Trade Receivables 127 149 114 90 Loans 560,113 521,399 469,195 470,677
Investments 13,394 26,480 28,024 6,302
Other Financial Assets 3,280 2,320 2,202 2,449 Non-Financial Assets Current Tax Assets(Net) 24 39 62 94 Defered Tax Assets(Net) 690 409 269 171 Investment Property 157 159 162 156 Property ,Plant and Equipment 2,573 2,425 2,386 2,427 Right to use Asset 159 154 155 168 Captial Work- In- Progress 360 329 302 287 Goodwill 300 300 300 300 Other Intangible Assets 78 83 81 85 Other Non Financial Assets 1,430 1,321 1,272 854 Total- Assets 675,555 619,654 575,100 548,816 6 Consolidated Statement of Assets and Liabilities (` in millions) Particulars 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 LIABILITIES Financial Liabilities Derivative Financial Instruments 3,151 1,749 - - Trade Payables 2,516 3,052 2,716 2,220 Debt Securities 143,550 118,129 97,596 102,660 Borrowings(other than Debt securities) 355,845 337,221 324,981 300,115 Deposits 2,554 2,596 2,720 2,560 Subordinated Liabilities 4,030 4,426 3,964 4,017 Lease Liability 166 163 160 168 Other Financial Liabilities 11,857 10,102 8,992 11,885 Non-Financial Liabilities Current Tax Liabilities(net) 1,156 1,442 2,101 808 Provisions 3,552 3,518 3,801 3,712 Deferred Tax Liabilities(net) 83 86 93 151 Other Non-Financial Liabilities 341 369 311 507 EQUITY Equity attributable to equity owners of the 144,933 134,994 125,891 118,292 company Non-Controlling Interest 1,821 1,807 1,774 1,721 Total Liabilities and Equity 675,555 619,654 575,100 548,816 7 Consolidated Financial Results (` in millions) 9M FY 9M FY Q3 FY Q3 FY Q2 FY Q1 FY Particulars FY 2020 2021 2020 2021 2020 2021 2021 Income Interest Income 82,017 68,548 29,438 24,971 27,290 25,289 94,177 Service Charges 730 676 274 254 318 137 943 Sale of Services 85 150 36 46 31 18 191 Other Income 211 202 157 67 32 23 233 Income other than above 1,431 1,161 259 613 571 601 1,528 Total Income 84,474 70,737 30,164 25,951 28,242 26,068 97,072 Expenses Finance Cost 30,488 23,086 10,486 8,103 10,282 9,720 31,728 Impairment of Financial Instruments 1,721 1,664 1,009 976 281 431 1,871 Employee Benefit Expenses 8,665 8,555 2,889 3,089 2,976 2,800 12,085 Depreciation, Amortisation and 471 420 174 162 156 140 592 Impairment Other Expenses 5,667 5,687 2,101 2,094 2,104 1,462 8,192 Total Expenses 47,011 39,412 16,659 14,423 15,799 14,553 54,468 Profit before tax 37,463 31,325 13,506 11,528 12,443 11,515 42,604 Tax expense 9,512 7,996 3,439 2,918 3,136 2,938 10,917 Profit after Tax 27,951 23,329 10,067 8,610 9,307 8,577 31,687 Earnings per share –Basic (`) 69.42 57.62 25.15 21.28 23.09 21.28 78.30
Earnings per share –Diluted (`) 69.35 57.52 25.02 21.25 23.08 21.25 78.20 8 MUTHOOT FINANCE: DRIVING INCLUSIVE GROWTH o India’s largest gold financing company (by loan portfolio) o Trusted pan-India brand in the gold loans sector; revolutionised India’s gold banking o Our intervention has empowered millions of people across the social pyramid
Multiple service offerings
CORE OTHER SERVICE SERVICES
Gold Loans Money Transfer Services Collection Services
National Pension Scheme Personal Loans
9 MFIN - A GLIMPSE
29 166 tonnes States/Union territory presence Gold jewellery kept as security
4,600+ 100,000+ Pan-India branches Retail investor base across debenture and subordinated debt portfolio
25,000+ 200,000+ Team members Customers served every day
` 503,907 mn
Loan Assets Under Management (As of December 31, 2020) 10 SHAREHOLDING PATTERN
Strong promoter interest in business with 74% stake
22.77 NSE Ticker 3.67 MUTHOOTFIN (%) Shareholding as on December 31, 2020 BSE Ticker Promoters & Relatives 533398 FII, FC, MF & Others
Public Market Capitalisation (as on December 31,2020) ` 485,659 million
73.56
11 BOARD OF DIRECTORS
M.G. George Muthoot George Alexander Muthoot George Thomas Muthoot Chairman George Jacob Muthoot Managing Director Wholetime Director Wholetime Director
Alexander M George Jacob Benjamin Koshy Jose K Mathew Ravindra Pisharody Wholetime Director Independent Director Independent Director Independent Director
V. A. George Pratip Chaudhuri Usha Sunny Independent Director Independent Director Independent Director 12 DIVIDEND PAYOUT
Delivering consistent returns to stakeholders (%)
FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015
Dividend (% )* 150 120 100 60 60 60
First Interim Dividend (%) 150 120 100 60 40 40
Second Interim Dividend (%) - - - - 20 -
Final Dividend (%) - - - - - 20
Dividend Payout Ratio (%) 19.91 24.36 22.48 20.30 29.50 35.36
* On face value of ` 10 per equity share
13 GEOGRAPHICAL PRESENCE
A strong presence of 4632 branches across India
(%) Branches region wise State wise Branch Network
Jammu & Kashmir 7 16 Himachal Pradesh 60 Punjab 10 Chandigarh East West 189 Uttarakhand 10 Haryana 22 136 Delhi Assam 16 North South 224 33 Rajasthan Uttar Pradesh 145 185 Bihar Tripura 25 (As of December 31, 2020) 4 17 Jharkhand West 17 Gujarat Madhya Pradesh Bengal 195 100 156 Daman & Diu Chhattisgarh 01 Odisha 25 74 Maharashtra 261 Dad ra & Nagar Haveli 01 Telangana o Rural India accounts for about 65% of total 294 gold stock in the country Goa Andhra Karnataka 26 Pradesh 519 o Large portion of the rural population has 413
limited credit access Pondicherry Tamil Nadu 8 Kerala 972 o Catering to under-served rural and semi- 565 Andaman & Nicobar urban markets through strong presence Islands 6
14 DIGITAL INITIATIVES
Digital convenience for new gen & Millennium Customer acquisition
Direct Credit Facility PoS Terminals • Loan proceeds credited to bank account • Enables swiping of Debit • NEFT/RTGS/IMPS mode of bank cards issued by banks transfer • Swiping charges for • Less cash handling at branch Interest payments • Instant credit to customer bank waived off account
Loan repayment option through
• Paytm • PhonePay
15 DIGITAL INITIATIVES
Online Gold Loan (OGL) • 20.3 % of gold loan customers are transacting online.
Muthoot Online iMuthoot App
Mobile App • Launched in Nov’16 has about 29.5 lakhs downloads. • Our online services has now been re-branded to • Online Gold Loan (OGL) facility available to withdraw Muthoot Online, from WebPay earlier. loan amount and renewal, apart from payments. • Customers can now make payment of interest and • Rs.4,432 Crs payments from 1.33 Cr successful principal re-payments using Debit Card/Net Banking. transactions so far. • Withdraw available loan amount and renew eligible • Updated scheme details available with loan calculator. loans through our Online Gold Loan (OGL) facility. • Google maps integrated for easy location of nearest • To facilitate this service, we have partnered with branch and fix appointment. leading Banks and online payment gateway service • UPI facility has been introduced in Feb’19. providers. • Paytm Payment gateway has been introduced in • e-Sign facility has been launched in September’17. June’19. • Bank account online linking feature introduced. • e-Sign facility has been introduced in Jan’18. • Along with gold loans, lead creation for PL, HL, AL also introduced. • Bank account online linking feature introduced.
16 DIGITAL INITIATIVES
Loan at Home
Loan at Home App
Mobile App
• Launched in July’20 has about 10K + downloads. • The loan at home is an app-based digital service, with which a customer can apply for a gold loan through the ‘Loan@Home’ mobile app and web portal • After which an appointment is made for the visit by Muthoot Finance executives, to visit the customer’s home. Now the customer can avail of a gold loan from the comfort of their home without having to visit the branch at any stage of the procedure. • Loan top-up and repayment facilities are also available in this application
17 Standalone Statement of Assets and Liabilities (` in millions)
Particulars 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 ASSETS Financial assets Cash and cash equivalents 85,174 55,557 58,786 55,046
Bank Balance other than above 720 529 741 1,360
Derivative Financial Instruments 252 159 1,490 3,449 Trade Receivables 83 81 83 47 Loans 513,588 476,478 425,620 426,042 Investments 20,606 34,387 36,130 14,383 Other Financial Assets 2,204 1,208 1,136 1,057
Non-Financial Assets
Defered Tax Assets(Net) 419 201 127 -
Property ,Plant and Equipment 2,411 2,259 2,202 2,227
Captial Work- In- Progress 360 329 302 287
Other Intangible Assets 50 52 48 51
Other Non Financial Assets 1,165 1,126 1,060 648
Total- Assets 627,032 572,366 527,723 504,597 18 Standalone Statement of Assets and Liabilities (` in millions)
Particulars 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020
LIABILITIES
Financial Liabilities
Derivative Financial Instruments 3,151 1,749 - -
Trade Payables 2,415 3,009 2,620 2,185
Debt Securities 135,162 110,791 92,808 99,619
Borrowings(other than Debt securities) 327,170 308,017 292,075 268,706
Subordinated Liabilities 2,400 2,763 2,956 2,976 Other Financial Liabilities 10,153 8,994 8,110 10,617 Non-Financial Liabilities Current Tax Liabilities(net) 1,097 1,384 2,065 782 Provisions 3,492 3,464 3,716 3,633 Deferred Tax Liabilities(net) - - - 40
Other Non-Financial Liabilities 212 229 212 321
EQUITY
Equity Share Capital 4,012 4,012 4,010 4,010
Other Equity 137,768 127,954 119,151 111,708
Total Liabilities 627,032 572,366 527,723 504,597 19 REVENUE & PROFIT
Standalone Financial Results (` in millions)
YoY YoY 9M FY 9M FY Q3 FY Q3 FY Q2 FY Q1 FY FY Growth Growth 2021 2020 2021 2020 2021 2021 2020 (%) (%) INCOME Interest Income 75,395 62,138 21 27,169 22,806 19 25,066 23,160 85,644 Other than Interest 2,068 1,064 94 596 403 48 778 694 1,584 Income Total 77,463 63,202 23 27,765 23,209 20 25,844 23,854 87,228 EXPENSES Finance Cost 27,411 20,209 36 9,455 7,094 33 9,241 8,715 27,909 Employee benefit 7,060 6,987 1 2,329 2,509 (7) 2,450 2,282 9,657 Expense Administrative & Other 4,988 4,973 0 1,858 1,852 0 1,853 1,277 7,067 expenses Impairment on Financial 838 909 (8) 585 612 (4) 107 146 957 Instruments Directors Remuneration 242 214 13 81 71 14 80 80 633 Depreciation & 353 308 15 140 110 28 114 99 431 Amortisation Total 40,894 33,601 22 14,450 12,248 18 13,845 12,599 46,654 PROFIT Profit Before Tax 36,569 29,601 24 13,315 10,961 21 11,999 11,255 40,574 Profit After Tax 27,265 22,032 24 9,914 8,152 22 8,943 8,408 30,183 20 EQUITY
Strong Capital Base
Networth (` in millions)
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Equity Share Capital 4,012 4,012 4,010 4,010 4,010
Other Equity 137,768 127,954 119,151 111,708 110,004
Total 141,780 131,966 123,161 115,718 114,014
21 ASSETS
Core focus continues to be gold loan
Gross Loan Assets under management*
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Growth Growth
QoQ (` in million) (` in million) (` in million) (` in million) (` in million) YoY (%) (%)
Gross loan assets under 503,907 470,163 412,957 416,106 384,982 31 7 management
Break-up of Gross Loan Assets under management
Gold Loans under 496,225 462,339 404,949 407,724 377,245 32 7 management
Other loans 7,682 7,824 8,008 8,382 7,737 (1) (2)
*Principal amount of Loan assets
22 LIABILITIES
Stable sources of funding*
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Growth Growth
YoY QoQ (` in million) (` in million) (` in million) (` in million) (` in million) (%) (%) Secured Non-Convertible Debentures 2,775 2,896 3,023 3,160 3,394 (18) (4) (Muthoot Gold Bonds)
Secured Non-Convertible Debentures- 132,758 108,190 90,110 96,840 103,919 28 23 Listed
Borrowings from Banks/FIs 194,851 177,364 156,452 145,775 129,038 51 10
External Commercial Borrowings- Senior 73,305 73,853 75,583 75,665 32,091 128 (1) secured Notes
Subordinated Debt - - - 21 21 (100) -
Subordinated Debt -Listed 2,411 2,775 2,969 2,969 3,406 (29) (13)
Commercial Paper 49,572 47,290 49,288 35,954 46,102 8 5
Other Loans 9,845 9,956 11,268 11,880 7,852 25 (1)
Total 465,517 422,324 388,693 372,264 325,823 43 10
*Principal amount of Borrowings
23 GOLD LOAN PORTFOLIO
Gaining scale over the years
Gold Loan Assets Under Management* (` in billions)
520 496 480 462 440 408 405 400 377 360 336 320 288 280 260 272 233 243 240 216 200 160 120 80 40 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
*Principal amount of gold Loan assets
24 GOLD HOLDING
Carrying the trust of millions of our customers
Gold jewellery kept as security (In tonnes)
200 176 180 173 169 165 163 166 160 155 142 149 134 140 131 118 120
100
80
60
40
20
0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
25 GEOGRAPHICAL SPREAD OF GOLD LOAN PORTFOLIO
Diversified gold loan portfolio across India (%)
100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 East 5 6 6 7 7 8 8 9 9 9 9 9 West 11 13 15 17 18 19 20 20 19 20 19 19 North 19 22 22 22 23 23 23 23 23 23 23 23 South 65 59 57 54 52 50 49 48 49 48 49 49
Gold Loan Assets Under Management * (` in billions)
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
260 216 233 243 272 288 336 377 408 405 462 496
*Principal amount of Gold Loan Assets 26 PRODUCTIVITY
Widening presence with increasing gold loan business per branch
Average Gold Loan Per Branch * (` in millions)
115 107.13 105 100.36 95 89.28 88.55 83.17 85 74.97 75 63.69 63.20 66.70 65 55.01 56.93 55 50.63
45
35
25
15 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
*Principal amount of Gold Loan Assets
27 HIGHLY LIQUID PORTFOLIO (1/2)
Disbursements and Collections (` in billions)
167
148
102 98 91 90 87 82 69 69 70 65 68 61 58 60 55 54 48 45 43 41 43 42
FY15 FY16 FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Avg Monthly Disbursement Avg Monthly Collection
Strong level of disbursements and collections
28 HIGHLY LIQUID PORTFOLIO (2/2)
Efficient Collection
100% 62% 66% 60% 61% 60% 66% 80%
60%
40%
20%
0%
% of collections to disbursement to collections of % FY15 FY16 FY17 FY18 FY 19 FY 20
1m 2m 3m 4m 5m 6m Collections in 6 months of disbursements made in respective periods
A high proportion of gold loan is repaid within first 6 months
29 SAFETY OF OUR GOLD LOAN PORTFOLIO
Lender’s Perspective & Borrower’s Perspective
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
Gold Loan assets (` in Billions) 497 462 405 407 377 336 288 272 243 233
Quantity of Gold content in Ornaments 166 163 165 176 173 169 155 149 142 131 held as Security (Tonnes)
Gold Price/gm (`) 4,599 4,621 4,448 3,955 3,594 2,910 2,824 2,725 2,670 2,470 Lender’s Perspective
Market Price of Gold Content in 763 753 734 696 622 492 438 406 379 324 Ornaments (` in Billions)
Margin of safety on loans 35% 39% 45% 42% 39% 32% 34% 33% 36% 28%
Borrower’s Perspective Market Value of Gold Ornaments (` in Billions) with 20% additional value towards 916 904 881 835 746 590 526 487 455 389 making charges etc
Equity of Borrower in the Gold Ornaments 46% 49% 54% 51% 49% 43% 45% 44% 47% 40% net of loans availed
* Above calculations are made on overall portfolio and excludes interest accrued on loans 30 CUSTOMER BASE
Highly churning customer base (1/2)
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 Jun-19 Mar-19
Gold Loan AUM (` in Millions) 496,892 462,339 404,949 407,724 377,245 349,419 351,708 335,853
QoQ % change in Gold Loan 7 14 (1) 8 8 (1) 5 - AUM
No. of Loan Accounts 80,32,610 76,24,105 75,79,640 80,22,325 80,25,103 81,03,274 82,35,723 80,62,139 QoQ % change in no. of loan 5 1 (6) - (1) (2) 2 - accounts
No.of Active customers 50,15,666 48,28,505 47,45,491 49,33,886 48,95,029 48,57,129 48,51,024 47,21,243
QoQ % change in no. of 4 2 (4) 1 1 - 3 - customers
31 CUSTOMER BASE
Highly churning customer base (2/2)
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 Jun-19 Mar-19
Above Gold Loan AUM and No. of customers includes: Fresh loans to inactive customers during the quarter in Gold Loan AUM
No. of customers 438,173 395,800 185,351 352,036 400,888 367,872 414,527 380,171 % of customers 9 8 4 7 8 8 9 8 O/s Loan Amount (` in Millions) 29,600 27,268 10,547 21,806 23,608 17,549 21,226 20,023
Fresh loans to New Customers during the quarter in Gold Loan AUM No. of customers 388,391 409,037 160,123 346,626 376,036 347,848 387,384 360,251 % of customers 8 8 3 7 8 7 8 8 O/s Loan Amount (` in Millions) 29,759 33,388 10,807 25,622 25,583 19,241 23,487 23,148
Fresh loans with new collateral to existing active customers during the quarter in Gold Loan AUM No. of customers 720,583 644,535 364,964 702,566 802,024 799,453 845,482 779,363 % of customers 14 13 8 14 16 16 17 17
O/s Loan Amount (` in Millions) 46,175 43,390 20,576 42,368 49,661 41,281 48,079 42,75132 YIELD ON LOAN ASSETS AND NIM
Yearly (%) Quarterly (%)
26.00 26.00 24.58 24.00 23.03 24.00 22.97 21.66 22.71 21.43 22.21 21.63 22.31 22.35 22.30 22.00 22.00 19.72 20.00 19.31 20.00 20.27 18.00 18.00 16.93
16.00 15.52 16.00 15.50 15.29 14.47 14.54 14.34 13.94 14.19 14.00 14.00 12.74 11.38 12.00 12.00 10.84 10.47 9.52 10.00 10.00 10.27 8.69 8.37 8.41 8.11 9.42 9.79 7.77 7.65 7.47 8.00 9.25 6.92 7.16 7.51 8.00
6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2021* 2020* 2021* 2021* 2021* 2020* *Under IND -AS Interest Income on Average Loan Assets
Interest Expense on Average Loan Assets
Net Interest Margin
33 INTEREST SPREAD
Yearly (%) Quarterly (%)
26.00 26.00 24.58 24.00 23.03 24.00 22.97 21.66 21.43 22.21 22.71 22.35 21.63 22.30 22.29 22.00 22.00 20.27 19.31 19.72 20.00 20.00
18.00 18.00
16.00 16.00 15.39 14.04 13.85 13.68 13.81 13.45 14.00 13.27 13.50 14.00 12.42 11.88 12.63 12.00 12.00 10.93 10.80 10.9010.53 9.24 9.00 10.00 9.19 9.03 9.08 9.16 10.00 8.99 8.45 8.39 8.38 8.92 8.76 8.79 8.00 8.00 6.00 6.00 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* 2021* 2020* 2021* 2021* 2021* 2020* *Under IND-AS
Interest Income on Average Loan Assets
Interest Expenses on Average Outside Liabilities
Interest Spread
34 RETURN ON AVERAGE LOAN ASSETS
Attractive returns over the years
Yearly (%) Quarterly (%)
10.00 10.00 9.00 8.11 9.00 8.79 8.00 8.11 8.14 8.10 8.06 8.14 8.00 7.00 6.31 6.36 7.00 6.00 6.00
5.00 5.00 4.05 4.47 4.00 4.00 3.22 3.32 3.03 3.00 3.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2021* 2020* 2021* 2021* 2021* 2020*
*Under IND-AS
35 IMPAIRMENT OF LOAN ASSETS
Stage III Loans Assets and ECL Provision (` in millions) Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Stage III Loan Assets 6,568 5,920 10,553 8,992 9,769 % Stage III Assets on Gross Loan Assets 1.30 1.26 2.56 2.16 2.54 ECL Provision on Gross Loan Assets 6,208 5,636 5,538 5,427 7,178 ECL Provision as % of Gross Loan Assets 1.23 1.20 1.34 1.30 1.86 Excess Provision outstanding in books 2,954 2,954 2,954 2,954 1,191
Staging Criteria
Stage Description Provision Mechanism
Stage 1 0-30 days past due PD x LGD x Stage 1 Asset Stage 2 > 30 to <= 90 past due PD x LGD x Stage 2 Asset Stage 3 > 90 days past due LGD x EAD of Stage 3 Asset
PD-Probability of default LGD-Loss given default EAD-Exposure at Default
Bad Debts (` in millions)
Q3 FY 2021 Q3 FY 2020 Q2 FY 2021 Q1 FY 2021 9M FY 2021 9M FY 2020 FY 2020 Bad Debts Written Off 27 329 10 28 65 495 599 % of Bad Debts written off to 0.005 0.09 0.002 0.01 0.01 0.13 0.14 Gross Loan Assets
36 LIABILITY MIX
Maintaining a diversified funding profile*
(%)
1 Secured Non-Convertible Debentures (Muthoot Gold Bonds) – ` 2,775 mn (1%) 1 2 10 Secured Non-Convertible Debentures – Listed – `132,758 mn (28%) 28 Borrowings from Banks/Fis - ` 194,851 mn (42%)
16 External Commercial Borrowings- Senior secured Notes – ` 73,305 mn (16%)
Subordinated Debt – ` 0 mn (0%) 42 Subordinated Debt – Listed - ` 2,411 mn (1%)
Commercial Paper – ` 49,572 mn (10%)
Other Loans – ` 9,845 mn (2%) *Principal amount of Borrowings
(As of December 31, 2020)
37 DOMESTIC CREDIT RATINGS
Highest Rating among gold loan companies Short-term Rating Rating Indicates
COMMERCIAL PAPER Very strong degree of safety with regard to timely payment of financial CRISIL RATINGS CRISIL A1+ obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial ICRA LIMITED ICRA A1+ obligation and carry lowest credit risk BANK LOANS Very strong degree of safety with regard to timely payment of financial ICRA LIMITED ICRA A1+ obligation and carry lowest credit risk Long-term Rating Rating Indicates
SUBORDINATED DEBT High Degree of safety with regard to timely servicing of financial CRISIL RATINGS CRISIL AA/Positive obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial ICRA LIMITED ICRA AA(Stable) obligations and carry very low credit risk NON CONVERTIBLE DEBENTURE High Degree of safety with regard to timely servicing of financial CRISIL RATINGS CRISIL AA/Positive obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial ICRA LIMITED ICRA AA(Stable) obligations and carry very low credit risk BANK LOANS High Degree of safety with regard to timely servicing of financial ICRA LIMITED ICRA AA(Stable) obligations and carry very low credit risk 38 INTERNATIONAL CREDIT RATINGS
Long-term Rating
Rating Agencies Rating Indicates
An elevated vulnerability to default risk, particularly in the event of adverse change in business or economic condition over time, FITCH RATINGS BB(Stable) however, business or financial flexibility exists that supports the servicing of financial commitments.
Less vulnerable in the near-term but faces major ongoing S&P GLOBAL RATINGS BB(Negative) uncertainities to adverse business, financial and economic conditions.
Obiligations are judged to be speculative and are subject to MOODY’S INVESTORS SERVICE Ba2 (Stable) substantial credit risk. The modifier 2 indicates a midrange ranking
39 BREAK-UP OF TOTAL INCOME
Interest Income (` in millions) Yearly Quarterly
100,000 100,000 85,644 75,395 80,000 80,000 67,570 62,138 56,546 62,021 60,000 60,000 53,641 49,077 48,130 42,703 40,000 27,168 40,000 22,806 25,066 23,160 20,000 20,000 0 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 0 2021* 2020* 2021* 2021* 2021* 2020* Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20*
Other Than Interest Income (` in millions) Yearly Quarterly
3000 3,000 2500 2,500 2,068 2000 2,000 1,584 1500 1,310 1,500 1,236 1,064 921 1000 1,000 778 694 543 620 596 397 500 403 500 230 0 0 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* 2021* 2020* 2021* 2021* 2021* 2020* *Under IND-AS 40 OPERATING EXPENSES TO AVERAGE LOAN ASSETS
Operational efficiency over the years
Yearly (%) Quarterly (%)
8.00 8.00 7.50 7.50 7.00 7.00 6.50 6.50 6.00 6.00 5.63 5.50 5.43 5.50 5.45 5.10 5.01 4.89 4.94 5.00 5.00 4.85 4.46 4.50 4.50 4.08 4.08 3.99 4.00 4.00 3.89 3.65 3.50 3.50
3.00 3.00
2.50 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2021* 2020* 2021* 2021* 2021* 2020* *Under IND AS
41 BREAK-UP OF OPERATING EXPENSES
Yearly (` in million) Quarterly (` in millions) Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 2021* 2020* 2021* 2021* 2021* 2020* Employee Benefit 9,657 8,415 7,393 7,280 6,418 6,304 5,917 5,453 2,329 2,509 2,450 2,282 7,060 6,987 Expenses Rent 2,158 1,974 1,913 1,808 1,713 1,650 1,542 1,309 560 548 592 429 1,581 1,607 Advertisement & 1,163 1,056 720 531 626 651 702 579 264 442 404 142 810 869 Publicity Communication Costs 355 368 404 372 378 371 364 243 113 85 101 75 289 258 Traveling and 273 240 182 186 187 212 190 175 58 73 49 32 139 210 Conveyance Printing and Stationery 177 153 136 129 144 160 185 168 49 40 40 22 111 123 Repairs and 283 280 304 362 290 281 272 256 84 73 76 58 218 220 Maintenance Legal and Professional 260 203 154 124 93 189 216 86 127 60 67 122 316 199 Charges Business Promotion 720 481 209 201 149 140 279 332 41 145 129 115 285 543 Expenses Directors Remuneration 633 561 431 362 196 192 192 192 81 71 80 80 242 214 Depreciation and 431 421 439 482 575 841 475 454 140 110 114 99 353 308 Amortisation Expenses Others 1,677 1,260 2,970 835 1,014 733 731 550 562 386 395 282 1,239 944 Provision For Standard - - - 2,647 1,223 180 214 765 ------& NPA Assets Impairment on 957 259 316 - - - - - 585 612 107 146 838 909 Financial instruments Total 18,744 15,670 15,571 15,319 13,006 11,904 11,279 10,562 4,994 5,154 4,604 3,884 13,482 13,392 *Under IND-AS 42 BREAK-UP OF OPERATING EXPENSES
Yearly (%) Quarterly (%) Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 2021* 2020* 2021* 2021* 2021* 2020* Employee Benefit 52 54 47 48 49 53 52 52 47 49 53 59 52 52 Expenses Rent 12 13 12 12 13 14 14 12 11 11 13 11 12 12 Advertisement & 6 7 5 3 5 5 6 5 5 9 9 4 6 6 Publicity Communication Costs 2 2 3 2 3 3 3 2 2 2 2 2 2 2 Traveling and 1 2 1 1 1 2 2 2 1 1 1 1 1 2 Conveyance Printing and Stationery 1 1 1 1 1 1 2 2 1 1 1 1 1 1 Repairs and 2 2 2 2 2 2 2 2 2 1 2 1 2 2 Maintenance Legal and Professional 1 1 1 1 1 2 2 1 3 1 1 3 2 1 Charges Business Promotion 4 3 1 1 1 1 2 3 1 3 3 3 2 4 Expenses Directors Remuneration 3 4 3 2 2 2 2 2 2 1 2 2 2 2 Depreciation and 2 3 3 3 4 7 4 4 3 2 2 3 3 2 Amortisation Expenses Others 9 8 19 5 8 6 6 5 11 7 9 7 9 7 Provision For Standard - - - 17 9 2 2 7 ------& NPA Assets Impairment on Financial 5 2 2 - - - - - 12 12 2 4 6 7 instruments Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 *Under IND-AS 43 PROFITABILITY RATIOS
Yearly (%) Quarterly (%) Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 (Based on Income) 2021* 2020* 2021* 2021* 2021* 2020*
Interest expense to 32.00 32.51 30.50 39.92 46.31 48.71 53.08 52.34 34.06 30.57 35.76 36.53 35.39 31.98 Gross Income
Selling, general and administrative expenses 29.26 32.24 28.93 34.88 41.36 48.26 44.66 35.89 23.32 27.50 26.40 24.04 24.56 28.32 to Net Income
Provisions & Write Offs 1.61 0.59 5.44 8.16 6.20 1.67 1.89 3.49 3.20 3.80 0.64 0.96 1.68 2.12 to Net Income
Operational expenses 30.87 32.84 34.38 43.03 47.56 49.93 46.55 39.37 26.51 31.30 27.04 25.00 26.23 30.43 to Net Income
OPBDT / Net Income 69.13 67.16 65.62 56.97 52.44 50.06 53.45 60.62 73.49 68.70 72.96 75.00 73.77 69.57
Depreciation to Net 0.73 0.90 1.00 1.33 2.13 3.72 2.03 1.76 0.77 0.68 0.69 0.65 0.71 0.72 Income
OPBT / Net Income 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 72.72 68.02 72.27 74.34 73.06 68.85
PBT / Net Income 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 72.72 68.02 72.27 74.34 73.06 68.85
PAT / Net Income 50.88 42.47 40.38 34.17 30.93 30.23 33.60 39.11 54.15 50.59 53.86 55.54 54.47 51.24
*Under IND-AS 44 PROFITABILITY RATIOS
Yearly Quarterly (%) (%) (Based on Average Mar- Mar- Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Loan Assets) 20* 19* 2021* 2020* 2021* 2021* 2021* 2020* Interest income to avg. 23.03 21.63 22.21 21.43 19.72 19.30 20.27 21.66 22.31 24.58 22.71 22.35 22.30 22.97 loan assets Interest expense to avg. 7.51 7.16 6.92 8.69 9.25 9.52 10.84 11.38 7.77 7.65 8.37 8.41 8.11 7.47 loan assets Net Interest Margin 15.52 14.47 15.29 12.74 10.47 9.78 9.42 10.27 14.54 16.93 14.34 13.94 14.19 15.50 Other income to avg. loan 0.43 0.40 0.47 0.35 0.25 0.25 0.16 0.09 0.49 0.43 0.71 0.67 0.61 0.39 assets Net Income Including Other 15.95 14.87 15.76 13.09 10.72 10.03 9.59 10.37 15.03 17.37 15.04 14.61 14.80 15.89 Income Selling, general and administrative expenses to 4.68 4.81 5.32 4.56 4.43 4.84 4.28 3.72 3.51 4.79 3.98 3.51 3.64 4.51 avg. loan assets Provisions and write offs to 0.26 0.08 0.11 1.07 0.67 0.17 0.18 0.36 0.48 0.66 0.10 0.14 0.25 0.34 avg. loan assets PBDT to avg. loan assets 11.01 9.98 10.33 7.45 5.62 5.02 5.12 6.28 11.04 11.92 10.96 10.96 10.91 11.05 Depreciation to avg. loan 0.11 0.12 0.15 0.17 0.23 0.37 0.20 0.18 0.11 0.11 0.09 0.10 0.10 0.11 assets PBT to avg. loan assets 10.90 9.85 10.19 7.28 5.39 4.65 4.93 6.10 10.93 11.81 10.87 10.86 10.81 10.94 Tax to avg. loan assets 2.79 3.54 3.82 2.81 2.08 1.62 1.71 2.05 2.79 3.03 2.77 2.75 2.75 2.80 PAT to avg. loan assets 8.11 6.31 6.36 4.47 3.32 3.03 3.22 4.05 8.14 8.79 8.10 8.11 8.06 8.14 Cash Profit to avg. loan 8.22 6.44 6.51 4.65 3.54 3.40 3.42 4.24 8.25 8.90 8.19 8.21 8.16 8.25 assets *Under IND-AS 45 PROFITABILITY
Efforts getting rewarded
Profitability at a glance (` in millions)
Yearly PBT PAT Quarterly PBT PAT
45,000 40,574 45,000 40,000 40,000 35,000 36,569 30,768 30,183 35,000 30,000 28,447 29,601 30,000 25,000 27,265 25,000 19,210 20,000 22,032 19,721 20,000 15,114 17,776 15,000 11,936 13,168 10,279 15,000 13,315 10,042 11,798 11,999 10,000 11,255 7,801 9,914 10,961 10,000 8,943 8,408 8,096 8,152 5,000 6,705 5,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2021* 2020 2021* 2021* 2021* 2020* *Under IND-AS
46 NETWORTH
Steady capital position
Share Capital and Reserves & Surplus (` in millions)
150,000 141,780 140,000 131,966 130,000 115,718 123,161 120,000 114,014 110,000 97,928 100,000 90,000 78,120 80,000 65,164 70,000 56,192 60,000 50,835 50,000 37,356 42,646 40,000 30,000 20,000 10,000 0 Mar 13 Mar-14 Mar- 15 Mar-16 Mar-17 Mar-18* Mar-19* Dec-19* Mar-20* Jun-20* Sep-20* Dec-20*
*Under IND-AS
47 RETURN ON EQUITY
Stable shareholder value creation Return on Average Equity
Yearly (%) Quarterly (%)
55 55 50 50 45 45 40 40 35 35 28.97 29.64 28.05 28.24 27.72 30.15 28.26 30 28.16 30 25 24.81 25 22.40 20 19.50 19.44 15 20 14.35 15.13 10 15 5 10 0 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18* Mar 19* Mar 20* Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2021* 2020* 2021* 2021* 2021* 2020*
*Under IND-AS
48 CAPITAL RATIO
Maintaining capital well above the statutory requirement
Capital Adequacy Ratio (%)
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Capital Adequacy Ratio 26.38 25.73 26.30 25.47 26.51
Tier-I 25.28 24.62 25.20 24.30 26.18
Tier-II 1.10 1.11 1.10 1.17 0.33
49 MARKET VALUE RATIO
Equity market valuation ratios indicate potential for upside
9M FY 9M FY FY Q3 FY 2021 Q3 FY 2020 Q2 FY 2021 Q1 FY 2021 2021 2020 2020
Earnings per share (`)
- Basic 24.72 20.34 22.30 20.96 67.98 54.98 75.31
- Diluted 24.69 20.32 22.28 20.94 67.91 54.89 75.21
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Book Value per share (`) 353.28 328.82 306.99 288.43 284.40
Market price per share (`)** 1,210.55 1,132.10 1,086.05 613.15 761.45
Price to Earnings ratio*** 13.71 13.49 13.08 8.14 11.29
Price to Book Value ratio 3.43 3.44 3.54 2.13 2.68
**Source: www.nseindia.com ***Based on trailing 12 months EPS
50 CAPITALISATION RATIOS
Headroom for further leveraging
(` In millions)
Dec-20 Sep-20 Jun-20 Mar-20 Dec-19
Outside Liabilities 485,252 440,401 404,561 388,878 339,678
Cash & Bank Balances & Investment 95,502 79,465 84,769 59,253 47,869 in MF liquid Funds
Tangible Networth 141,731 131,914 123,113 115,668 113,957
Capital Gearing 2.75 2.74 2.60 2.85 2.56
51 TEAM STRENGTH
Groomed human capital over the years to meet growing business requirements
(No. of Employees)
27000
25987 25893 26000 25554 25430 25012 25149 25000 24881 24205 24224 24000 23455 22882 23000 22781 22000
21000
20000 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
52 OUR SUBSIDIARY
53 ASIA ASSET FINANCE PLC – AN OVERVIEW
Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance on December 31, 2014. As on December 31,2020, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 13,309 million as on December 31, 2020 AAF is a Registered Financial Company based in Sri Lanka a fully licensed, deposit-taking institution registered with the Central Bank of Sri Lanka and listed in the Colombo Stock Exchange
AAF is in lending business since 1970. At present the company is involved in Retail Finance, Hire Purchase & Business Loans and has 40 branches across Sri Lanka.
The company formerly known as Finance and Land Sales has been in operation for over 49 years, evolving to serve the growing needs of people of Sri Lanka. 54 PRODUCTS
o Fixed Deposits o Mortgage Loans o Leasing o Factoring o Business Loan o Short Term Loans o Personal Loan o Micro Finance o Group Personal Loan o Loan against Gold Jewellery o Corporate Loans
55 BRANCH NETWORK
AAF has operations in various parts of Sri Lanka providing the best services and easy access to clients
Chankanai Chunnakam Nelliyadi
Mullaitivu
Vavuniya Puthukkudiyiruppu Oddusuddan Sammanthurai Valaichcenai Kegalle Ragala
Chenkaladi
Matale
City office Kalmunai Nawalapitiya Akkaraipattu Gampola
Kalutara (SC) Pundoloya Thalawakele Mathugama Beruwala 56 Key Financial Parameters (LKR in millions)
Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
INR/LKR 0.39408 0.39286 0.39408 0.40086 0.40386 0.388758
Number of branches 40 28 40 30 29 29
Number of Employees 423 531 423 424 461 495
Loan AUM (LKR) 13,309 13,014 13,309 12,982 13,481 13,839 Capital Adequacy Ratio (%) 16 15 16 17 16 17
Total Revenue (LKR) 2,167 2,515 710 760 697 3,332
Total Expense (LKR) 2,122 2,410 686 722 714 3,239
Profit Before Tax (LKR) 45 105 24 38 (17) 93 Profit After Tax (LKR) 18 90 16 18 (17) 70
Shareholders Funds (LKR) 2,189 2,194 2,189 2,173 2,155 2,172 Total Outside Liabilities 13,143 12,532 13,143 12,476 12,501 12,983 (LKR)
Total Assets (LKR) 15,332 14,726 15,332 14,649 14,656 15,155
57 OUR SUBSIDIARY
58 MUTHOOT HOMEFIN – AN OVERVIEW
Muthoot Homefin (India) Limited is a Housing Finance Company registered with The National Housing Bank (NHB). It became a wholly owned subsidiary of Muthoot Finance Ltd in Aug’17. MHIL focuses on extending affordable housing finance and targets customers in Economically Weaker Sections (EWS) and Lower Income Groups (LIG) in Tier II & Tier III locations. It operates on a ‘Hub and Spoke’ model, with the centralised processing at Corporate Office at Mumbai. MHIL has operations in Kerala, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chandigarh, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Haryana, Punjab, Delhi, Tamil Nadu, Chattisgarh and Pondicherry. As on December 31, 2020, it has a loan portfolio of Rs.18,807 million. ICRA and CARE assigned Short Term Debt Rating of ICRA A1+ and CARE A1+ respectively for its Commercial Paper. 59 Business Performance (` in millions)
Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Number of branches 108 107 108 108 107 107
Number of Sales Offices 108 107 108 107 107 107
Number of Employees 281 438 281 280 344 412
Loan AUM (`) 18,807 20,248 18,807 19,377 19,787 19,769
Capital Adequacy Ratio (%) 46 50 46 48 47 52
Total Revenue (`) 1,667 2,401 508 571 588 2,876 Total Expense (`) 1,565 1,983 483 500 582 2,452
Profit Before Tax (`) 102 418 25 71 6 424
Profit After Tax (`) 75 306 18 53 4 318
Shareholders Funds (`) 4,336 4,248 4,336 4,318 4,264 4,260
Total Outside Liabilities (`) 13,556 15,286 13,556 13,713 15,062 14,590
Total Assets (`) 17,892 19,534 17,892 18,031 19,326 18,850
60 Business Performance (` in millions)
Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Disbursement (`) 856 3,564 126 116 613 4,127 Borrowings (`) 13,077 14,913 13,077 13,312 14,712 14,185 Debt Equity Ratio (%) 3.01 3.50 3.01 3.08 3.44 3.33 Yield on Advances (%) 12.48 12.36 11.61 12.74 13.04 11.77 Interest Spread (%) 3.30 2.90 2.68 3.52 3.65 2.29 NIM (%) 4.94 5.19 4.27 4.97 5.52 4.40 Cost to Income Ratio (%) 36.56 37.55 35.79 30.15 43.47 36.06 Return on Assets (ROA) (%) 0.59 2.03 0.44 1.26 0.09 1.65
Return on Equity (ROE) (%) 2.33 9.97 1.66 4.96 0.38 7.75
Stage III Loan Assets 293 335 293 331 337 338 % Stage III assets on Gross Loan 1.56 1.65 1.56 1.71 1.70 1.71 Assets Stage III ECL Provision 111 270 111 111 111 111 ECL Provision 385 341 385 348 309 179 ECL Provision as a % of Gross Loan 2.05 1.68 2.05 1.80 1.56 0.91 Assets Number of Customers 23,418 24,678 23,418 23,812 24,088 24,390
61 • Disbursements in 9M FY 2021: Rs 856 mn. AUM as on Dec 31, 2020: Rs. 18,807 mn, Loan Book as on Dec 31, 2020: Rs 16,709 mn. • Average Ticket Size in 9M FY 2021: Rs. 0.95 mn Financial • Business Presence: Maharashtra, Gujarat, Rajasthan, Madhya Pradesh , Kerala, Andhra Pradesh, Telangana, Karnataka, Highlights Uttar Pradesh, Haryana ,Chandigarh , Delhi, Punjab ,Tamil Nadu, Chattisgarh and Pondicherry Presence in 108 locations • ROA for 9M FY 2021: 0.59%, ROE for 9M FY 2021: 2.33% • Average cost of borrowings of 9.18% for 9M FY 2021. Capital Adequacy Ratio: 46.46%, Debt Equity Ratio: 3.01 • Average Yield: 12.48%, Interest Spread: 3.30% • Received PMAY subsidy of INR 744 mn for 3658 cases in 9M FY 2021.
Growth • Increasing the leverage from 3.01x currently will help to improve the ROE Growth • Higher credit rating will help in raising funds at competitive rates. Drivers • Strong liquidity in Group’s balance sheet, along with its free cash flows to fund the capital requirements Drivers • Established corporate brand name among borrower segment, superior customer servicing capabilities and effective loan recovery mechanisms • Tier II / III cities focused distribution network with a in-house sales team along with cross-sale to the existing gold loans customers of the group • Long Term Rating from CRISIL AA (Positive) which indicates low risk will help in lower cost of funds. Short Term Rating : Profitability ICRA A1+ / CARE A1+ • Debt/Equity ratio at 3.01 times as on Dec 31, 2020, indicates ample scope for financial leverage to increase ROE • Infrastructure sharing with the parent (Muthoot Finance) helps reduce overall Opex
• Our focus segment, “affordable housing finance” is the centered around the Government initiative of "Housing for All" by 2022 • Government promoted schemes such as PMAY-CLSS will benefit the end consumers. Opportunities • Huge shortfall for housing units in EWS / LIG segment in India • Attraction of builders to the construction of affordable housing due to Infrastructure status given in Union Budget • Increase in affordability driven by sustained GDP growth rate and stable property prices. • Decrease in average members per household and emergence of nuclear families • Increase in workforce to be driven by expected bulge in working age population • Increasing urbanization led by rural-urban migration and reclassification of rural towns
62 OUR SUBSIDIARY
63 MUTHOOT INSURANCE – AN OVERVIEW
MIBPL became a wholly owned subsidiary of Muthoot Finance Ltd in Sep 2016. MIBPL is an unlisted private limited company holding a licence to act as Direct Broker from IRDA since 2013.
It is actively distributing both life and non-life insurance products of various insurance companies.
During Q3 FY21,it has insured more than 10,31,000 lives with a First year premium collection of Rs.734 million During Q3 FY20,it has insured more than 835,000 lives with a First year premium collection of Rs.580 million under Traditional ,Term and Health products..
64 Key Business Parameters (` in millions)
Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Premium Collection (` ) 2,575 2,168 1,073 1,059 443 3,232
Number of Policies 19,98,871 20,11,505 10,40,520 815,930 142,421 28,06,336
Key Financial Parameters (` in millions)
Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Total Revenue (`) 325 191 129 132 64 237
Total Expense (`) 32 32 13 10 9 97
Profit Before Tax (`) 293 158 116 122 55 141
Profit After Tax (`) 219 118 86 91 42 104
Shareholders Funds (`) 750 544 750 663 572 531
Earnings per share (`) 292 157 115 122 56 139
65 OUR SUBSIDIARY
66 BELSTAR MICROFINANCE LIMITED – AN OVERVIEW
As of December 2020 , Muthoot Finance holds 70.01% in BML. BML was incorporated on January 1988 at Bangalore and the Company was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as “NBFC-MFI” by RBI effective from 11th December 2013.
BML was acquired by the ‘Hand in Hand’ group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by ‘Hand in Hand’s’ Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri District of Karnataka in March 2009 to 3 SHGs, 22 members for INR 0.20 mn.
In the last ten years of its operations, BML primarily relied on taking over the existing groups formed by Hand in Hand India . BML predominantly follows the SHG model of lending. Effective January 2015, BML started working in JLG model of lending in Pune district, Maharashtra.
As of December 31, 2020, BML operations are spread over 17 states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha ,Pondicherry ,Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Haryana, Punjab, Jharkhand, Uttarakhand ,West Bengal and Tripura. It has 619 branches, with 117 controlling regional offices and employs 4365 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 28,856 mn in December 2020 67 Key Financial Parameters (` in millions)
Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Number of Branches 619 573 619 618 603 603 Number of Employees 4,365 4,269 4,365 4,413 4,197 4,425 Gross Loan AUM (`) 28,856 22,849 28,856 26,867 25,754 26,310 Capital Adequacy Ratio (%) 24 27 24 27 26 26
Total Revenue (`) 3,919 3,681 1,454 1,320 1,171 5,007 Total Expense (`) 3,479 2,654 1,398 1,124 983 3,675 Profit Before Tax (`) 440 1,027 56 196 188 1,332 Profit After Tax (`) 350 769 54 151 145 990 Stage III Loan Assets 194 258 194 167 287 240 % Stage III assets on Gross Loan 0.67 1.13 0.67 0.62 1.11 0.91 Assets Stage III ECL Provision 158 230 158 153 215 216 ECL Provision 677 347 677 462 418 369 ECL Provision as a % of Gross Loan 2.35 1.52 2.35 1.72 1.62 1.40 Assets Shareholders Funds (`) 5,293 4,748 5,293 5,244 5,131 4,978 Total Outside Liabilities (`) 25,355 20,022 25,355 24,300 23,454 20,210 Total Assets (`) 30,648 24,770 30,648 29,544 28,585 25,188
68 OUR SUBSIDIARY
69 OURMUTHOOT SUBSIDIARY MONEY– AN OVERVIEW
Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently , Company has started extending loans for Commercial Vehicles and Equipments.
As on 31st December, 2020 it has a total loan portfolio of Rs.4,210 million.
CRISIL assigned Long Term Debt Rating of CRISIL AA-/Positive for its bank limits.
7045 OUR SUBSIDIARY
Key Financial Parameters (` in millions)
Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Number of branches 18 24 18 18 18 24 Number of Employees 225 297 225 234 245 304
Gross Loan AUM (`) 4,210 4,915 4,210 4,633 4,966 5,090 Capital Adequacy Ratio(%) 25 21 25 22 21 20 Total Revenue (`) 541 492 159 185 198 704 Total Expense (`) 508 453 178 138 193 665 Profit Before Tax (`) 32 39 (20) 47 5 39 Profit After Tax (`) 33 43 (15) 73 (25) 27 Stage III Loan Assets 389 122 389 237 180 249 % Stage III assets on Gross Loan Assets 9.24 2.45 9.24 5.12 3.62 4.89 Stage III ECL Provision 100 30 100 62 47 65 ECL Provision 247 94 247 190 192 143 ECL Provision as a % of Gross Loan 5.87 1.88 5.87 4.10 3.87 2.81 Assets Shareholders Funds (`) 1,095 1,078 1,095 1,110 1,037 1,062 Total Outside Liabilities (`) 3,402 4,086 3,402 3,701 4,161 4,323 Total Assets (`) 4,497 5,164 4,497 4,811 5,198 5,385 7145 OTHER SUBSIDIARIES
MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED
(` In millions)
9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Networth 1,071 1,041 1,071 1,068 1,063 1,053
MUTHOOT TRUSTEE PRIVATE LIMITED
(` In millions)
9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020
Networth 10 10 10 10 10 10
72 REGISTERED OFFICE 2nd Floor, Muthoot Chambers Opposite Saritha Theatre Complex Banerji Road, Kochi Kerala – 682 018. India Tel: (91484) 2394712 Fax: (91484) 2396506
CIN: L65910KL1997PLC011300 RBI Reg No: N 16.00167
EMAIL (Individual & Corporate Investors) [email protected] (Institutional Investors) [email protected] www.muthootfinance.com